Month-to-Month Could Be 15-Days to the Curb

We are working with a multi-location user with several leases in an unnecessarily precarious state of month-to-month lease term. As they are finding, this situation leaves them extremely vulnerable…more so than they imagined.

In Florida this month-to-month tenancy is a tenancy at will which is cancelable by giving “—not less than fifteen (15) days notice prior to the end of any monthly period.”  So rather than requiring a notice period equal to the rental period, that is, one month, as little as fifteen (15) days notice is all that is necessary.

Consider a month-to-month holdover with rent paid in advance for the month of January. The landlord could terminate this tenancy at will in Florida with a notice delivered on January 16th. (See Florida Statutes Sections 83.02-83.03).

In the case of our client, they require unique tenant improvements and industry  permitting prior to occupancy in a new location. With only weeks to vacate and occupy a new location, they would need to close their doors for up to 3 months.

The good news is that this situation is easily avoidable. Have a real estate expert take a look at any leases expiring within the next 12-24 months to fully understand your timing and requirements should you decide to vacate your space. At minimum, a single page addendum should be permissible requiring either party to provide at least 90 or 180 days notice in a month-to-month or holdover situation.

As originally posted by Casey Bourque on LinkedIn